Notas

Everything You Need to Know About Section 8 Company Registration

A Section 8 Company is a special form of non-profit organization in India, registered under Section 8 of the Companies Act, 2013. Its primary purpose is to promote charitable or social objectives such as education, healthcare, art, science, culture, sports, environment, and social welfare. Unlike commercial entities, it reinvests all profits back into its objectives instead of distributing them among members.

https://www.compliancecalendar.in/section-8-company

1. What Is a Section 8 Company?

A Section 8 Company functions like any other limited company but with charitable intent. It can be registered as a Private Limited or Public Limited company. The key difference is that profits cannot be shared as dividends; they must be used to advance the company’s cause.

2. Features

• Formed for charitable or non-profit objectives

• Enjoys separate legal identity

• Limited liability of members

• No minimum capital requirement

• Exemption from using “Private Limited” or “Limited” in its name

3. Eligibility Criteria

To register, the company must:

1. Have an intent to promote charity, art, science, research, or social welfare.

2. Apply profits toward these objectives only.

3. Prohibit the distribution of dividends among members.

4. Documents Required

• PAN and Aadhaar of all directors

• Passport-size photos

• Address proof (Utility bill, Rent Agreement, or Property Tax Receipt)

• NOC from property owner

• Draft MOA and AOA specifying objectives

5. Step-by-Step Registration Process

1. Obtain DSC & DIN: Digital Signature and Director Identification Number for proposed directors.

2. Reserve Name: Apply via SPICe+ Part A on the MCA portal with suitable NGO-style names.

3. Draft MOA & AOA: Define mission, governance, and working structure.

4. Apply for License: File Form INC-12 or SPICe+ Part B with declarations in INC-14 & INC-15.

5. Approval & Incorporation: After verification, the Regional Director grants a license in Form INC-16 or INC-17.

6. Certificate of Incorporation: Issued by ROC with a CIN, marking the company’s legal existence.

6. Post-Incorporation Compliances

After registration, a Section 8 Company must:

• Maintain proper books of accounts

• Conduct annual board and general meetings

• File AOC-4 and MGT-7A annually with ROC

• Obtain 12AB and 80G registration for tax benefits

7. Benefits

• Legal credibility and recognition

• Limited liability protection

• Tax exemptions for company and donors

• Access to CSR and government funding

• Enhanced transparency and governance

8. Why Register a Section 8 Company?

It is the most reliable structure for NGOs seeking credibility and corporate recognition. It offers better governance, funding access, and protection compared to trusts or societies.

9. How Compliance Calendar LLP Can Help

At Compliance Calendar LLP, experts assist you through every step — from drafting documents to MCA filing and post-registration compliances like 12AB, 80G, and CSR registration — ensuring quick, smooth, and compliant incorporation.

Conclusion

A Section 8 Company serves as a legal foundation for social change. It blends professionalism with philanthropy, allowing individuals and organizations to make a measurable social impact under a recognized legal structure. With proper guidance, you can register your Section 8 Company seamlessly and begin your journey toward nation-building.

PSARA Registration

The Private Security Agencies (Regulation) Act, 2005 (PSARA) was enacted by the Government of India to regulate the operations of private security agencies across the country. With the growing demand for private security services in industries, residential complexes, and events, PSARA ensures that these agencies operate transparently, employ qualified personnel, and maintain accountability in safeguarding lives and property. For more information, click the link below:

https://www.compliancecalendar.in/psara-license

Meaning and Purpose of PSARA

PSARA registration is mandatory for all private security agencies intending to provide security guards, armed guards, or watchmen services. The primary objective of the Act is to standardize the functioning of private security agencies and to ensure that only credible and trained personnel are deployed. This regulation enhances public safety, prevents misuse of authority, and maintains national security interests.

Eligibility Criteria

To obtain a PSARA license, the applicant must be an Indian citizen or an Indian-registered company, partnership firm, or LLP. For companies with foreign investment, compliance with FDI guidelines under the FEMA Act, 1999 is essential. The applicant should have a clean legal record with no criminal convictions. Additionally, directors or partners must also possess good moral character and sound financial standing.

PSARA Registration Process

The PSARA registration process involves several stages and coordination with both state and central authorities:

MoU with Training Institute: The agency must sign a Memorandum of Understanding (MoU) with a government-recognized security training institute to train guards as per PSARA norms.

Document Preparation: Applicants must submit incorporation documents, address proof, ownership details, income tax returns, and affidavits of good character.

Police Verification: A thorough background check of the applicant and key personnel is conducted by the local police department.

Application Submission: The completed application is submitted to the respective Controlling Authority of the state (generally under the Home Department).

License Issuance: Once verified and approved, the PSARA license is granted for a period of five years, which is renewable upon expiry.

State-Wise Jurisdiction

PSARA registration is a state-specific license, meaning an agency must obtain separate registrations for each state in which it intends to operate. The rules, procedures, and fees may slightly differ between states, but the overall framework remains consistent under the PSARA Act, 2005.

Training and Employment Standards

The Act mandates structured training for security guards in areas such as physical fitness, fire safety, crowd control, and first aid. Uniforms and identity cards are compulsory for all personnel. Moreover, the agencies must maintain registers containing details of employees, clients, and duty assignments for inspection.

Consequences of Non-Compliance

Operating without PSARA registration is a punishable offense under the Act, leading to penalties, suspension, or cancellation of business licenses. It also affects the credibility of the agency in securing contracts with government or corporate clients.